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US 10-year yields ease as CPI expectations temper Fed bets
The US Dollar Index steadied near 99.8 as markets priced a 65% chance the Fed holds rates at its September meeting.
US Treasury yields eased on Tuesday as investors stayed cautious ahead of upcoming inflation data and the outlook for the US-Iran situation, which has faced obstacles, according to FXStreet.
The move came alongside strength in crude, with West Texas Intermediate rising for a second straight day to a seven-day high of $84.61.
In rates markets, the US 10-year benchmark note slipped one basis point to 4.69%. July CPI is expected to fall slightly to 3.4% year over year, with core CPI forecast at 2.5%, while the Producer Price Index is also projected to soften on August 13.
FXStreet also pointed to payroll-related updates, including an ADP Employment Change four-week average of 8.25K jobs and a downward revision to the prior week. Prime Terminal data showed markets assigning a 65% probability to the Fed keeping rates unchanged in September and a 35% probability of a 26-basis-point hike, while the US Dollar Index held steady at 99.81.
Latest closeWTI crude $91.10 ▲3.2%|Dollar index 102.12 ▼0.1%